Magic Mirror Company had net income of $850,750. Depreciation expense is $85,000. During the year, accounts receivable and inventory increased by $62,500 and $72,600, respectively. Prepaid expenses and accounts payable decreased by $39,100 and $46,500, respectively. There was also a gain on the sale of equipment of $18,250. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 5RE: In the current year, Harrisburg Corporation had net income of 35,000, a 9,000 decrease in accounts...
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Magic Mirror Company had net income of $850,750. Depreciation expense is $85,000. During the year, accounts receivable and inventory increased by $62,500 and $72,600, respectively. Prepaid expenses and accounts payable decreased by $39,100 and $46,500, respectively. There was also a gain on the sale of equipment of $18,250. How much was the net cash flow from operating activities on the statement of cash flows using the indirect method?

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